E-Loan Inc

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• Referral from April 22, 2014
  

  Katie A. asked:

  HOME BUYING ADVICE?? I am looking for any advice on buying a home. I am young with new credit, not bad credit, just new and not much on it except a few small loans. I am not married. I just need to know what steps to take and if I can even get a home loan with little credit. I don't want any extravagant home, just enough for a family.. Also if anyone knows a good realtor who has experience with cases like mine please let me know. thanks!

  

  Sharon H. replied:

  When I bought my first home with little knowledge about buying, I used eloan.com which will kind of guide you through the process. That was in 2005 and their rules may have changed, but it's worth a shot to look into them. 20 or 30 year mortgages are the most common ways to buy. Do your research on interest rates, 'points' on a mortgage, and hidden APR. Try to avoid balloon loans (with a HUGE payment at the end of loan) and ARMs (adjustable rate mortgages). The ARM loans will have your payment changing frequently like crazy based on the ever changing interest with the economy and your payment could skyrocket. You do usually have to have at least around 640 credit score and the better your credit is, the better of an interest rate you'll get. Also remember that yearly property taxes will probably tack on to a loan if you choose to pay it with an escrow account through the mortgage. You will also have to have homeowner's insurance, which will also be another monthly payment. If you buy in a subdivision with HOA or POA (home owner's or property owner's associations) fees that's ANOTHER monthly payment. It adds up fast, so consider everything that adds to your monthly 'home costs.'

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